What Is Wholesaling
If you are like many investors who like to dabble with a few projects on the side. Real estate investing is something that can produce significant income for you, if you are committed to the process. In order to succeed, a bit of education and understanding is required.
Wholesaling is a very simple way to make money in real estate investing. It does not require a lot of upfront investment or risk. It is a great way to start your real estate business. If you have seen some of the fix and flip types of programs on television and are interested in doing rehabs, but don’t have the income or time to start a huge rehab project, wholesaling might be the perfect opportunity for you.
Doing your homework when it comes to wholesaling is important for getting your perspective on the goals you should be setting for finding the right type of properties. This article will help you to get closer to meeting your investing goals.
What Actually Is A Wholesale Deal
If you are new to real estate investing you may not have heard of this term before, so we will begin with a simple introduction to wholesaling.
Wholesaling is a method where you the wholesaler find a property and get it under contract with the seller of the house. Once you get the property under contract you will then assign it to an end buyer, or in many cases to another investor, who is a rehabber.
To make things really clear you are not actually buying or selling the house, you will not close on the house, and you will not go through any of the transactions that usually occur when you close on a property. All of these things cost money and will be done by the end buyer. I bet you are relieved!
The only thing you are actually doing is assigning the rights to the seller: this will include signing a contract with the seller, which often if you don’t know what you are doing, can get you into trouble.
Don’t Get In Trouble With the Law Or Lose Deals Due To Your Lack of Knowledge
Without the proper real estate education discovering what the different type of transactions are can be confusing. It is this confusion that often gets many would be investors …
- In trouble with the law
- Confused or uncertain of what they are really doing, which results in confusing the seller
- Losing deals because of lack of knowledge
A wholesale deal is very similar to how car dealers sell cars. The dealer buys the car from a wholesaler, puts the car on his lot and then sells the car to the end owner. The only people who are involved are the seller, you the wholesaler and the end buyer. Often the investor who is paying the full price for the house will choose to either hold the house to sell at a later date, or fix it up to sell it at a higher price.
The Truth About Real Estate Investing Coaching and Mentoring
Many investors think they can read a book, or attend a seminar and begin working on deals and making money. For some would-be investors this works, but most investors begin with a lot of zeal and then realize they don’t know how to answer sellers questions. They don’t know how to fill out contracts or keep themselves out of trouble. Getting involved with a coaching program where you can get the right training, surround yourself with the right people who are also learning how to make money doing real estate is priceless!
We have a several different coaching programs for new and seasoned investors. If you’re new, you may want to start of with our back stage access series which costs less then $100/mth. If you’re seasoned or very serious about your commitment to real estate investing, our Gold Rush program or Ascent To Financial Freedom programs might work better for you. Some of these programs include an attorney component/coaching to help ensure your ability to stay legally compliant. How much would that cost you normally?